The United States Securities and Exchange Commission (SEC) recently approved new regulations tightening data security on Wall Street. The amendments to Regulation S-P, also known as the safeguards rule, require broker-dealers and investment advisers to notify clients within 30 days of detecting a data breach and to have a program in place to detect and respond to hackers. The regulations address the need for covered institutions to provide prompt notice to customers in case of compromised information by an unauthorized user
The safeguards rule was last updated in 2000, making it imperative for the new rules to modernize and enhance how consumers' nonpublic personal information is treated by these institutions. SEC Chair Gary Gensler emphasized the transformative impact of data breaches over the past two decades and highlighted the importance of protecting customers' financial data. The updated regulations also aim to tackle the increasing use of technology and the associated risks in the financial sector. Larger entities will have 18 months, while smaller entities will have 24 months after the publication of the rules in the Federal Register to ensure compliance with the new breach reporting requirements. ```https://www.bankinfosecurity.com/us-sec-approves-wall-street-data-breach-reporting-regs-a-25268